Corridor Resources Inc. Files Preliminary Short Form Prospectus
Not For Release, Publication Or Distribution In Or Into The United States
Halifax, Nova Scotia, November 28, 2006, (TSX - CDH): - Corridor Resources Inc. ("Corridor" or the "Corporation") (TSX: CDH) is pleased to announce that it has engaged RBC Capital Markets to act as lead manager of a proposed marketed offering (the &Offering&) of common shares (&Shares&) of the Corporation. Aggregate gross proceeds from the Offering are anticipated to be approximately $30 million. The Offering will also include Jennings Capital Inc., D&D Securities Company and Beacon Securities Limited. The underwriters will have an option, exercisable for a period of 30 days from the date of closing, to purchase up to 10% in additional Shares at a price equal to the Offering price to cover over-allotments and for market stabilization purposes.
The net proceeds of the offering will be used to fund Corridor's McCully development drilling and completion program, exploration drilling in New Brunswick and Prince Edward Island and for general corporate purposes. Closing of the Offering is subject to certain conditions, including, but not limited to, receipt of all necessary securities regulatory approvals (including the approval of the Toronto Stock Exchange).
The Shares will be offered by way of a short form prospectus in all of the provinces of Canada, other than Quebec. A preliminary short form prospectus with respect to the Offering has been filed by Corridor by way of SEDAR with the securities regulatory authority in each of the provinces of Canada, other than Quebec. The Shares will be offered in the United States to qualified institutional buyers on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.
The Shares offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the Shares in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.
Corridor is a junior oil and gas exploration and production company, headquartered in Halifax, Nova Scotia, with interests onshore in New Brunswick, Prince Edward Island and Quebec, and offshore in the Gulf of St. Lawrence.
For further information:
Corridor Resources Inc.#301, 5475 Spring Garden Road,
Halifax, Nova Scotia
B3J 3T2
Contact: Norman W. Miller, President and CEO
Tel: (902) 429-4511
Fax: (902) 429-0209
Web: http://www.corridor.ca/
This press release contains certain forward looking statements relating to, but not limited to, Corridor's operations, anticipated financial performance, business prospects and strategies, including expectations relating to production levels; capital expenditure programs; the quantity of natural gas reserves; projections of market prices; projections of costs; supply and demand for natural gas; expectations regarding the ability to raise capital and to continually add to reserves through exploration and development; and treatment under governmental regulatory regimes. These statements are based on current expectations that involve numerous assumptions regarding factors and risks that could cause actual results to vary materially, including, without limitation to, the following factors: risks associated with oil and gas exploration, financial risks, substantial capital requirements, bank financing, government regulation, environmental, prices, markets and marketing, dependence on key personnel, dependence on Potash Corporation of Saskatchewan, Inc., availability of drilling equipment and access, risks may not be insurable, management of growth, expiration of licenses and leases, reserves estimates, seasonality, competition, conflicts of interest, Kyoto Protocol, issuance of debt, title to properties and hedging. There is no representation by Corridor that actual results achieved will be the same in whole or in part as those set out in the forward looking information. Furthermore, the forward looking statements contained in this press release are made as of the date hereof, and Corridor undertakes no obligation, except as required by applicable securities legislation, to update publicly or to revise any of the included forward looking statements, whether as a result of new information, future events or otherwise.
